R&D funding can pay for costs that are necessary for eligible research and development, but the exact answer depends on whether you are preparing a grant budget or claiming UK tax relief. A UKRI grant follows the rules of its particular funding opportunity. HM Revenue & Customs (HMRC) R&D Corporation Tax relief is a separate tax regime with its own defined cost categories. An expense accepted in one system is not automatically accepted in the other.
This guide separates the two systems, identifies typical eligible and excluded expenses, and gives a practical method for checking a cost before it enters a budget or tax claim. The UKRI figures and examples below are general guidance, not a guarantee that every programme will fund a particular item.
As an Amazon Associate I earn from qualifying purchases.
First decide which kind of R&D funding you mean
Research grants
A grant award is governed by the funder and by the specific call, scheme or competition. In the UKRI example, the organisation describes its cost page as general guidance and tells applicants to read the rules for the funding opportunity they are applying to. The call can set the permitted categories, the proportion funded, spending dates, appraisal requirements and special exclusions.
Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Grant accounting normally asks whether a cost is needed to deliver the proposed project and whether it can be justified in the application. Some support costs can be allowed even when they are not a direct experiment expense, but the opportunity rules decide how they are treated.
#1 Best Overall
- Read Before You Buy — No Video Output: These adapters support charging and USB 2.0 data transfer, but cannot transmit video signals. Except for standard USB webcams (which use USB data only), they are not compatible with HDMI/DisplayPort cables, video-capable USB-C hubs, or docking stations with video output.
- Convert USB-A Ports to USB-C: Designed to connect USB-C earphones, cables, flash drives, card readers, and other USB-C accessories to standard USB-A ports. Plug-and-play with no drivers or software required.
- Aluminum Alloy Housing: Built with a sturdy aluminum alloy shell that aids in heat dissipation and protects against daily wear and scratches. Designed to maintain a stable and secure connection.
- Compact & Travel-Friendly: The ultra-compact design allows the adapter to stay plugged into your device without blocking adjacent ports or adding bulk, reducing wear and tear on your original USB ports.
- 12-Month Warranty: Backed by a 12-month manufacturer warranty for peace of mind. Designed to meet strict quality control standards for reliable everyday performance.
HMRC R&D Corporation Tax relief
Tax relief is not a project grant or a reimbursement budget. A company claims relief through its Corporation Tax process for qualifying R&D activity and the costs that fit HMRC’s permitted categories. HMRC states that only the costs listed in its guidance can be claimed; costs outside those categories cannot be added simply because they helped the business.
Eligibility also depends on the company’s circumstances and the dates covered by its accounting period. A cost therefore needs both a qualifying activity connection and the correct treatment under the rules applying to that period.
Side-by-side distinction
| Question | UKRI grant example | HMRC tax-relief example |
|---|---|---|
| Who sets the rules? | UKRI and the individual funding opportunity. | HMRC and the Corporation Tax rules applicable to the company’s accounting period. |
| What is being funded? | A proposed research project, with costs assessed under the call’s budget rules. | Qualifying R&D activity reported in a company’s tax claim. |
| How is a cost tested? | Whether the opportunity permits it, it is justified for the project and it meets the funder’s conditions. | Whether it is a listed cost category connected to qualifying R&D and allowed for the relevant period. |
| Typical treatment of indirect support | May be permitted where the opportunity’s full-economic-cost rules allow it. | Only qualifying direct R&D or permitted indirect activities and listed categories can be included. |
| Funding rate or percentage | UKRI says it usually funds 80% of a project’s full economic cost; most equipment and consumables are usually funded at 80% of full economic cost. These are general figures, not a promise for every programme. | No single percentage is stated in the cited cost guidance; the calculation depends on the applicable tax rules and the company’s circumstances. |
| Can a public grant affect treatment? | The call may specify how other support and contributions must be shown. | Public support can affect how a cost is treated, so the company’s records and the rules for its accounting period must be checked. |
Do not merge the two columns when preparing a budget. A cost list copied from a grant application is not a valid tax-relief checklist, and a tax category is not evidence that a grant call will pay for the item.
Costs that can commonly appear in a UKRI grant budget
UKRI’s general guidance identifies several broad categories. The exact amount, funding share and approval process remain opportunity-specific.
Rank #2
- 5-in-1 USB-C Hub: Experience comprehensive connectivity featuring a Power Delivery input, two USB-A 2.0 ports, a USB-A 3.0 port, and an HDMI port. (Note: The USB-C power delivery input port is only for connecting an external wall charger to power your laptop and cannot power peripheral devices.)
- 90W Pass-Through Charging: Achieve optimal charging with 90W pass-through power to your laptop, supported by a total input of 100W, with the hub reserving 10W for operational efficiency. (Note: Wall charger not included.)
- Quick Data Transfers: Accelerate your productivity with rapid data transfers using a high-speed 5Gbps USB 3.0 port and two 480Mbps USB 2.0 ports.
- 4K HDMI Display: Enhance your visual experience with a hub capable of delivering 4K resolution at 30Hz in both mirror and extend modes. Please note that this hub is compatible with MacBook (macOS 12 and newer), Windows 10 and 11, ChromeOS, and laptops equipped with DP Alt Mode and Power Delivery. Note: This device is not compatible with Linux.
- What You Get: Anker USB-C Hub (5-in-1, 4K HDMI), welcome guide, 18-month warranty, and our friendly customer service.
Project staff
Staff costs can cover people whose work is required for the proposed project. The application should explain each person’s role, time commitment and relationship to the work plan. The call may have its own rules for salary calculations, replacement teaching, recruitment or support staff, so use the opportunity’s template rather than assuming that every payroll item is treated identically.
Equipment
Specialist equipment needed to perform the work may be an eligible category. A budget should distinguish the equipment’s purchase or use from ordinary office or personal-computing needs, because UKRI specifically lists basic computing equipment among its examples of ineligible costs. Explain why the item is needed, how it will be used and, where relevant, whether access to an existing facility is a better option.
Consumables
Materials consumed during the project can be included where the opportunity allows them and the application links the quantity and cost to the planned work. UKRI says most equipment and consumable costs are usually funded at 80% of full economic cost, but that general rate does not override a call’s own conditions.
Facilities, specialist computing and other access charges
Access to research facilities, specialist computing and similar resources can be eligible when the opportunity permits them. These are not blanket entitlements: identify the facility or service, explain the work it supports and use any required internal or external rate supplied by the call.
Rank #3
- Sleek 7-in-1 USB-C Hub: Features an HDMI port, two USB-A 3.0 ports, and a USB-C data port, each providing 5Gbps transfer speeds. It also includes a USB-C PD input port for charging up to 100W and dual SD and TF card slots, all in a compact design.
- Flawless 4K@60Hz Video with HDMI: Delivers exceptional clarity and smoothness with its 4K@60Hz HDMI port, making it ideal for high-definition presentations and entertainment. (Note: Only the HDMI port supports video projection; the USB-C port is for data transfer only.)
- Double Up on Efficiency: The two USB-A 3.0 ports and a USB-C port support a fast 5Gbps data rate, significantly boosting your transfer speeds and improving productivity.
- Fast and Reliable 85W Charging: Offers high-capacity, speedy charging for laptops up to 85W, so you spend less time tethered to an outlet and more time being productive.
- What You Get: Anker USB-C Hub (7-in-1), welcome guide, 18-month warranty, and our friendly customer service.
Visas and moving costs for certain staff
UKRI’s examples include visa and moving costs for certain staff. The wording matters: it does not mean every immigration or relocation expense is automatically payable. Confirm which staff, cost types and evidence the funding opportunity accepts before including them.
Other opportunity-dependent costs
A call can provide additional categories or special instructions for items such as access charges, shared resources and project support. If a category is not clearly described in the opportunity guidance, ask the funder or your institution’s research-office contact before treating it as eligible.
UKRI expenses that its general guidance gives as examples of ineligible costs
The following examples appear in UKRI’s general guidance. A particular opportunity can have further exclusions, so use this list as a warning screen rather than as a substitute for the call document.
- NHS support and treatment costs: costs for NHS support or treatment are listed as ineligible in the general examples.
- Family-member visa costs: visa costs for family members are excluded, even though certain staff visa or moving costs may be allowed.
- Peer-reviewed publication costs: publication costs associated with peer-reviewed journal articles and conference papers are listed as ineligible.
- Basic computing equipment: ordinary basic computing equipment is not an eligible item under the examples, so distinguish it from specialist computing required by the project.
- Contingency: a general contingency allowance cannot be inserted simply to cover unknown future spending.
- General care costs: general care costs are listed as ineligible.
- Alcohol in subsistence claims: alcohol cannot be claimed as part of subsistence.
These exclusions do not imply that the underlying activity is unimportant. They mean the cost is not payable under the cited general grant guidance. A different funder, call or institutional policy may use different rules.
Rank #4
- Dual Converters, Infinite Potential：Includes 2× USB C male to USB A female adapters and 2× USB A male to USB C female adapters. Perfect for a wide range of uses—tablets with Bluetooth keyboards, expand USB ports on macbook, and more. Two different converters for all your daily needs
- Next-Level 10Gbps & 3A Charging: No more slow 480Mbps, this usb to usb c adapter has a transfer speed of up to 10Gbps, allowing you to do more transferring in less time. This usb adapter fits both USB A and USB C charger, supporting up to 3A fast charging
- Upgraded Exquisite Craftsmanship: With an aluminum alloy housing and metal connector, the usbc to usb adapter is extremely durable and sturdy. Rigorously tested to withstand more than 10,000 times of plugging and unplugging, ensuring long-lasting performance
- Broad Compatible: The usb c to usb adapter widely supports all USB C/ USB A devices like laptops, tablets, cellphones, car chargers, and phone chargers. Such as compatible with MacBook Pro/Air 2023/2022, Thunderbolt 4/3 Devices,Apple MagSafe Watch 9/8/7/SE/Ultra, iPad Pro 2022/2021, Samsung Galaxy S23/S20/S10, and iPhone 17/16/15 Pro. Plug and play
- Please Note: To reach 10Gbps speed, keep the cable under 3.3 ft. For USB A Male to USB C adapters, try flipping the USB C connector. USB C Male to USB A adapters support bidirectional 10Gbps transfer within 3.3 ft
Costs HMRC may allow in an R&D Corporation Tax claim
HMRC’s approach starts with the qualifying R&D activity and then checks whether the expenditure belongs to an allowed category. Keep a traceable link between the cost, the technical or scientific work and the accounting period in which it was incurred.
Employees and some supplied staff
Staff costs can be relevant where employees perform qualifying R&D. HMRC also recognises some supplied-staff costs, subject to the conditions in force for the claim. Identify who performed the work, who employed or supplied them, and what qualifying activity they supported.
Consumables
Consumables used up in qualifying R&D can fall within the permitted categories. Your records should show what was consumed, the project or activity involved and the accounting period of the expenditure.
The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Software, data licences and cloud computing
HMRC’s examples include software, data licences and cloud computing. The presence of a subscription or licence does not by itself make the cost allowable: the resource must be connected to qualifying R&D and meet the applicable conditions.
Best Value
- 5-in-1 Connectivity: Equipped with a 4K HDMI port, a 5 Gbps USB-C data port, two 5 Gbps USB-A ports, and a USB C 100W PD-IN port. Note: The USB C 100W PD-IN port supports only charging and does not support data transfer devices such as headphones or speakers.
- Powerful Pass-Through Charging: Supports up to 85W pass-through charging so you can power up your laptop while you use the hub. Note: Pass-through charging requires a charger (not included). Note: To achieve full power for iPad, we recommend using a 45W wall charger.
- Transfer Files in Seconds: Move files to and from your laptop at speeds of up to 5 Gbps via the USB-C and USB-A data ports. Note: The USB C 5Gbps Data port does not support video output.
- HD Display: Connect to the HDMI port to stream or mirror content to an external monitor in resolutions of up to 4K@30Hz. Note: The USB-C ports do not support video output.
- What You Get: Anker 332 USB-C Hub (5-in-1), welcome guide, our worry-free 18-month warranty, and friendly customer service.
Contractors
Contractor costs can be included where the relevant rules and conditions are met. Keep the contract, invoices, description of the technical work and evidence showing how the work relates to qualifying R&D.
Clinical-trial volunteers
Payments or expenses connected with clinical-trial volunteers appear in HMRC’s listed examples, subject to conditions. Record the trial activity, the nature of the payment and the period in which it was incurred.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.HMRC costs that cannot be claimed under the cited guidance
HMRC gives the following examples of costs outside the allowable list:
- Production and distribution of goods or services: ordinary production or delivery activity is not the same as the qualifying R&D that may have preceded it.
- Capital expenditure: capital items are excluded from the cited cost categories.
- Land: land costs cannot be claimed under this guidance.
- Patents and trademarks: intellectual-property registration costs of this type are listed as unclaimable.
- Rent, rates and leasing costs: these costs are not included in the permitted list in the cited guidance.
- Any unlisted cost: HMRC’s wording is explicit that costs not listed on the page cannot be claimed under that guidance.
An expense can be commercially useful and still fail this test. Do not relabel production, property or intellectual-property spending as R&D merely because the business has an active development programme.
A practical way to classify an expense before you submit it
- Name the route. Write “grant budget” or “Corporation Tax relief” at the top of the review. If both routes are involved, create separate lines for the same underlying cost.
- Identify the exact rulebook. For a grant, open the current call guidance, costings template and award terms. For tax relief, use the HMRC rules that apply to the company’s accounting period and circumstances.
- Describe the activity, not just the item. Record what the person, equipment, software or service does in the project and which technical or research task it supports.
- Match the category. Place the cost in the funder’s or HMRC’s named category. If you cannot identify a category, mark it for clarification rather than forcing it into a similar-sounding line.
- Check exclusions. Compare the line with the relevant exclusion list. A grant exclusion does not transfer to tax relief, and a tax exclusion does not automatically govern a grant.
- Apply timing and allocation rules. Confirm the eligible project dates for a grant or the accounting-period treatment for a tax claim. Where a resource serves several activities, document the reasonable allocation method.
- Retain evidence. Keep quotes, invoices, payroll records, contracts, usage logs, facility rates and a short explanation of the work supported. The evidence should allow another reviewer to follow the amount back to the activity.
Timing, records and interaction with other support
Grant applications usually need costs to fall within the call’s permitted project period and may require a particular full-economic-cost format. The 80% UKRI figures are published general guidance, so the opportunity’s funding rate and exceptions control the actual request.
For HMRC claims, accounting-period dates and company circumstances can change the treatment. Close the period accurately, separate qualifying and non-qualifying work in your ledger, and retain the technical narrative that explains why the work qualifies.
If a project receives public support as well as internal or commercial funding, record each source against the relevant cost. The way support affects eligibility or calculation depends on the route and rules being used; do not assume that one claim can simply copy the figures from another.
Free tools Windows power users keep installed
One-click scans. No signup required.
Quick Recap
Illustrative decisions for common borderline items
| Expense | Grant-budget question | Tax-relief question |
|---|---|---|
| Specialist laboratory instrument | Does the call permit the equipment, and is the need justified in the work plan? Check the opportunity’s rate and any institutional approval. | Capital expenditure is listed as unclaimable in the cited HMRC guidance, so do not treat the instrument as an ordinary qualifying cost under that list. |
| Cloud computing used for model development | Is specialist computing an allowed category in this opportunity, and is the usage estimate documented? | Cloud computing is a listed example, but the spend must be connected to qualifying R&D and satisfy the applicable conditions. |
| Researcher’s salary | Is the role included in the call’s staff-cost rules and within the project dates? | Employee costs can be relevant when the employee performs qualifying R&D; retain evidence of the work and period. |
| Conference-paper publication fee | UKRI’s general examples list publication costs associated with conference papers as ineligible. | Do not assume a grant exclusion answers the tax question; test the expense against HMRC’s listed categories and the qualifying activity. |
| Routine manufacture of a finished product | Check whether the call treats the activity as project work or ordinary operations. | Production and distribution of goods and services are listed as unclaimable examples. |
Common mistakes and how to correct them
- Using one master list for both routes: maintain separate grant and tax schedules.
- Relying on a past award: reopen the current call rules because eligibility and funding shares are opportunity-specific.
- Calling every computer cost “specialist”: explain the technical requirement and distinguish project-specific resources from basic computing equipment.
- Adding a round-number buffer: remove a general contingency from a UKRI budget and price identifiable needs instead.
- Missing the accounting period: reconcile invoices, payroll and accruals to the period used in the HMRC claim.
- Keeping only invoices: add a technical description and allocation record so the connection to the qualifying work is clear.
- Assuming a supplier’s label proves eligibility: classify the underlying activity and cost category yourself.
Final checklist before submission
- Have you named the exact grant call or HMRC accounting-period rules?
- Is every line mapped to a permitted category with a project or qualifying-activity explanation?
- Have you removed the relevant exclusions, including unsupported contingencies or unlisted tax costs?
- Are dates, rates, allocations and other public support recorded consistently?
- Can your records show who incurred the cost, what work it supported and when it occurred?
- Have uncertain items been sent to the funder, research office or tax adviser instead of being guessed?
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
